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Ivory Coast National cocoa exporters evoke the invasion of 6 multinationals

03/02/2021
Source : ORISHAS FINANCE
Categories: Sectors

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The cocoa industry in Côte d'Ivoire finds itself in a real dependence on multinational companies which hold 100% of purchases. In a letter addressed to the Cocoa Coffee Council, the Group of Ivorian traders denounces this situation which excludes them from the sector. Six multinationals namely: Cargill, Barry Callebault, Olam, Touton and Sucden control the Ivorian brown gold sector. They represent 100% of purchases, either directly via their subsidiaries in Côte d'Ivoire (70 to 80 percent), or through export purchases (20 to 30 percent) from national players. There are two potential buyers, either the chocolate makers who buy today only with their 6 exclusive representatives in Côte d'Ivoire, or these 6 international representatives who do not oblige themselves to buy the products of their Ivorian competitors every year.
This situation is becoming increasingly difficult for national cocoa processors and exporters who are being suffocated. In a letter addressed to the Conseil Café Cacao (CCC), the regulatory body for the sector, and sent to the authorities on January 22, 2021, the Grouping of Ivorian traders (GNI) made up of national players denounced the control of the six on the sector.
This note diagnoses the situation and indicates that despite the efforts of the Ivorian authorities to support nationals and to increase the local processing of beans to create added value, the industrialization rate of cocoa remains low.
Approximately between 150,000 and 200,000 tons of beans remain blocked in the producing regions, for lack of buyers. To this end, the Gni has proposed a battery of measures including, in particular, the possibility for local processors and the subsidiaries of the Coffee and Cocoa Council to be able to evacuate their semi-finished or derived products without restriction despite the establishment of artificial barriers by the group. of the six installed in Côte d'Ivoire, which prevent nationals from having access to chocolate makers.

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